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Category > Business & Finance Posted 29 Jul 2017 My Price 3.00

Because the Fed is not constrained by a fixed exchange rate

Because the Fed is not constrained by a fixed exchange rate, it is free to set monetary policy without concerns about the effect on the value of the dollar.

a. How would the Fed’s actions during the 2007–2009 financial crisis have been constrained if the exchange rate had been fixed?

b. The value of the dollar actually increased at some points during the 2007–2009 recession. Is this increase the result you would have expected? If not, how can you explain this increase ? 

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Status NEW Posted 29 Jul 2017 02:07 PM My Price 3.00

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